Govt eyes new law to bring laundered money, experts at odds

The committee formed to determine the strategy of money laundering activities has recommended the strengthening the legal framework to bring back the siphoned-off money from abroad but the experts find political will can shoot the trouble.

According to the report of the committee, in order to recover the smuggled money, it is necessary to increase the capacity of the organizations involved as well as the coordination between the different agencies.

In countries where money is smuggled from Bangladesh, the diplomatic activities of Bangladesh missions need to be further enhanced. It is also important to create a database on the progress of cases filed in connection with money laundering.

In this context, the former governor of the Bangladesh Bank Salehuddin Ahmed said that although it is difficult, it is possible to get back the smuggled money. For this, first of all, there must be political commitment.

He also said, “If the government is politically committed that the smuggled money will be returned, then the structure won’t cause that much difficulties.” 

“Now global money laundering laws are very strict and it is possible to return the smuggled money by using it,” he said.

According to sources, a committee was formed in November last year to determine the strategy for recovering money laundered to different countries of the world, including Swiss banks. The committee was set up by the Central Task Force on Prevention of Money Laundering and Terrorist Financing.

Corrupt officials, garment makers who swindled workers’ money, importers who sold duty-free products at local markets, industrialists who ‘robbed’ banks and made under invoice to avoid tax siphoned off money.

An official of Bangladesh Financial Intelligence Unit (BFIU) said that the unit is working on develop separate guidelines so that the government can identify and bring bank money laundered abroad.

The changes into the guideline will also intensify existing watchdog on money laundering.

However, he was refraining from elaborate details. Sources said the BFIU is working jointly with the Anti Corruption Commission (ACC), Criminal Investigation Department CID) and Home Ministry Officials to develop such a protocol.

Earlier, Bangladesh ranked 26th among 149 countries in the ‘Illicit Financial Flows from Developing Countries’. Global Financial Integrity (GFI), a Washington-based research and advisory organization, stated this in its report published previously. According to the study, nearly $9,666 million in illicit money was siphoned out of Bangladesh annually.

Executive Director of Transparency International Bangladesh (TIB) Iftekharuzzaman said it is possible to bring back siphoned money – earned through corruption – with the help of an existing national and international framework of law.

“For this, courage, goodwill and skills are keys to carrying out the purpose,” he said adding that since smuggled money has been recovered before, the authorities concerned are aware of the whole process.

Asked why laundered money is not brought back now, though it was brought back years ago, he said maybe there were skilled manpower to do that job before and now such skills are lacking. “In a true sense, there might be much want for political will at present,” he added. The whole process of retrieving siphoned-off funds is now easier because it should follow the United Nations Convention Against Corruption (UNCAC). Under this Convention, it is possible to make agreements with other countries to retrieve the smuggled funds.

“We all know thousands of crores of taka are being siphoned off from our country. So we can’t rule out the truth,” Planning Minister Abdul Mannan said.

“Crores of taka which were laundered from the country could be invested in our ongoing development works. We have taken huge loan this year due to money laundering,” Mannan said.

He termed money laundering as having a serious negative impact on the country’s overall economy, saying that the government has taken various steps to prevent such crime.

Stating that those indulge in money laundering are ‘state thugs’, Ganaforum President Dr Kamal Hossain recently urged all to get united to establish ‘effective democracy’ in the country to get rid of such rigging.

“Thousands of crores of taka are being siphoned off abroad from the country. Such money laundering is a robbery at the state level and those involved with it are state thugs. We must get united to bring back the siphoned off money,” he said

Sources from BFIU said that entire Canada is a Begum Para for our corrupt officials, bankers, private sector honchos, bank robbing industrialists and politicians. Singling out one tiny place in Toronto only undermines the scale of the crimes and the amount of money siphoned off from Bangladesh, the sources added.

There are similar Begum Paras in major cities in Australia and the United States. Cities like Sydney, Melbourne, New York, Greater Washington DC suburb and Florida have seen new Bangladeshi settlement cropping up fast, according to the sources.

The official said “If you are serious, you can easily find out how many Bangladeshis have settled down there and the amount of properties the Begums and their Sahebzadas have brought in recent years”.

ask/wi